SAF’s Q1 sales came in line with the street’s expectations. Organic revenue growth slipped 8.8% on a lower LEAP-1B production rate due to the MAX grounding, while the headwinds of COVID-19 started to be visible in March, reflecting a decline of c.20%. The Q2 performance will be even worse, with sales declining in the range of 40-50%. To protect its cash, Safran will lower its capex, R&D expenses and opex. No financing issues ahead: the group’s liquidity is strong.
30 Apr 2020
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Safran SA (SAF:WBO) | 0 0 1.4% | Mkt Cap: 37,132m
- Published:
30 Apr 2020 -
Author:
Luis Pereira -
Pages:
3
SAF’s Q1 sales came in line with the street’s expectations. Organic revenue growth slipped 8.8% on a lower LEAP-1B production rate due to the MAX grounding, while the headwinds of COVID-19 started to be visible in March, reflecting a decline of c.20%. The Q2 performance will be even worse, with sales declining in the range of 40-50%. To protect its cash, Safran will lower its capex, R&D expenses and opex. No financing issues ahead: the group’s liquidity is strong.